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Upturn AI SWOT - About
CSWC 
Capital Southwest Corporation (CSWC)
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Upturn Advisory Summary
09/17/2025: CSWC (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
7 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $24
1 Year Target Price $24
| 2 | Strong Buy |
| 1 | Buy |
| 4 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 35.54% | Avg. Invested days 49 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 09/17/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.27B USD | Price to earnings Ratio 13.9 | 1Y Target Price 24 |
Price to earnings Ratio 13.9 | 1Y Target Price 24 | ||
Volume (30-day avg) 7 | Beta 1.01 | 52 Weeks Range 16.48 - 23.06 | Updated Date 09/17/2025 |
52 Weeks Range 16.48 - 23.06 | Updated Date 09/17/2025 | ||
Dividends yield (FY) 10.38% | Basic EPS (TTM) 1.64 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 39.95% | Operating Margin (TTM) 85.76% |
Management Effectiveness
Return on Assets (TTM) 6.55% | Return on Equity (TTM) 9.86% |
Valuation
Trailing PE 13.9 | Forward PE 9.99 | Enterprise Value 2152489728 | Price to Sales(TTM) 6.07 |
Enterprise Value 2152489728 | Price to Sales(TTM) 6.07 | ||
Enterprise Value to Revenue 17.77 | Enterprise Value to EBITDA - | Shares Outstanding 55628500 | Shares Floating 53935128 |
Shares Outstanding 55628500 | Shares Floating 53935128 | ||
Percent Insiders 4.08 | Percent Institutions 33.41 |
Upturn AI SWOT
Capital Southwest Corporation
Company Overview
History and Background
Capital Southwest Corporation (CSWC) was founded in 1961 as a publicly traded investment company. It initially focused on venture capital and private equity investments, evolving to its current focus on providing debt and equity to lower middle market companies. Significant milestones include shifts in investment strategy, weathering economic cycles, and adapting to regulatory changes.
Core Business Areas
- Lower Middle Market Debt Investments: Provides first lien senior secured debt, second lien secured debt, and unitranche debt to companies with annual EBITDA typically between $5 million and $25 million.
- Equity Investments: Makes equity co-investments alongside debt investments to enhance returns.
Leadership and Structure
Bowen Diehl serves as the President and CEO. The company operates with a structured investment team focusing on origination, underwriting, and portfolio management. A Board of Directors provides oversight and strategic guidance.
Top Products and Market Share
Key Offerings
- Senior Secured Debt: Provides secured debt financing to lower middle market companies, typically first or second lien. Market share data is fragmented and not readily available; competition includes other BDCs and private credit funds. Competitors include Ares Capital (ARCC), Main Street Capital (MAIN), and Prospect Capital (PSEC).
- Unitranche Debt: Offers a blend of senior and subordinated debt in a single tranche, providing flexibility to borrowers. Market share data is not precisely tracked; the competitive landscape includes similar BDCs and specialized credit funds. Competitors include Ares Capital (ARCC) and Golub Capital BDC (GBDC).
- Equity Co-Investments: Makes equity investments alongside debt to participate in the upside potential of portfolio companies. No specific market share available. Competitors include private equity firms and other BDCs.
Market Dynamics
Industry Overview
The business development company (BDC) industry is driven by demand for capital from lower middle market companies. The industry is sensitive to interest rate changes and economic cycles. Regulatory compliance with the Investment Company Act of 1940 is a key factor.
Positioning
Capital Southwest Corporation is positioned as a provider of flexible capital solutions to lower middle market companies. Its competitive advantage lies in its experienced investment team and disciplined underwriting approach.
Total Addressable Market (TAM)
The estimated TAM for private credit to lower middle market companies is $1 Trillion with growth projections between 6-10% a year. CSWC is well positioned to participate in the continued growth of the TAM.
Upturn SWOT Analysis
Strengths
- Experienced Management Team
- Disciplined Underwriting Process
- Diversified Investment Portfolio
- Strong Balance Sheet
- Access to Capital Markets
Weaknesses
- Sensitivity to Economic Cycles
- Reliance on Key Personnel
- Potential for Credit Losses
- Regulatory Compliance Costs
- Competition from Larger BDCs
Opportunities
- Increased Demand for Private Credit
- Expansion into New Geographies
- Strategic Acquisitions
- Partnerships with Private Equity Firms
- Growing Lower Middle Market
Threats
- Economic Downturn
- Rising Interest Rates
- Increased Regulatory Scrutiny
- Intensified Competition
- Credit Market Disruptions
Competitors and Market Share
Key Competitors
- ARCC
- MAIN
- GBDC
- PSEC
- TCRD
Competitive Landscape
Capital Southwest faces intense competition in the BDC space. Its advantages include its focused strategy and experienced team, while disadvantages include its smaller size compared to industry giants like Ares Capital.
Growth Trajectory and Initiatives
Historical Growth: Discuss Capital Southwest Corporation's historical growth requires reviewing past annual reports and analyzing revenue, assets, and investment portfolio growth. Actual values would need to be retrieved and presented.
Future Projections: Future growth projections are based on analyst estimates, management guidance, and industry trends. These are subject to change and vary depending on the source.
Recent Initiatives: Recent initiatives include new debt investment originations, equity co-investments, and strategic partnerships. The details would change based on specific initiatives.
Summary
Capital Southwest Corporation is a BDC focused on providing debt and equity to lower middle market companies. Its experienced management team and disciplined underwriting process are key strengths. Challenges include economic sensitivity and competition. Its dividend policy is attractive to investors seeking income.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company SEC Filings (10-K, 10-Q)
- Investor Presentations
- Earnings Call Transcripts
- Industry Reports
- Financial News Outlets (e.g., Bloomberg, Reuters)
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Market share data is based on estimates and may not be precise.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Capital Southwest Corporation
Exchange NASDAQ | Headquaters Dallas, TX, United States | ||
IPO Launch date 1990-03-27 | President & CEO Mr. Michael Scott Sarner CPA, CPA | ||
Sector Financial Services | Industry Asset Management | Full time employees 30 | Website https://www.capitalsouthwest.com |
Full time employees 30 | Website https://www.capitalsouthwest.com | ||
Capital Southwest Corporation is a business development company specializing in credit and private equity and venture capital investments in middle market companies, mezzanine, later stage, mature, late venture, emerging growth, buyouts, industry consolidation, recapitalizations and growth capital investments. The firm does not invest in startups, publicly traded companies, real estate developments, project finance opportunities, oil and gas exploration businesses, troubled companies, turnarounds, and companies in which significant senior management is departing. In lower middle market, the firm typically invests in growth financing, bolt-on acquisitions, new platform acquisitions, refinancing, dividend recapitalizations, sponsor-led buyouts, and management buyouts situations. The investment structures are Unitranche debt, subordinated debt, senior debt, first and second lien debt, and preferred and common equity. The firm makes equity co-investments alongside debt investments, up to 20% of total check and only makes non-control investments. The firm is Industry agnostic, but it prefers to invest in Industrial manufacturing and services, value-added distribution, healthcare products and services, business services, specialty chemicals, food and beverage, tech-enabled services and SaaS models. The firm seeks to invest in energy services and products, industrial technologies, and specialty chemicals and products. Within energy services and products, the firm seeks to invest in each segment of the industry, including upstream, midstream and downstream, excluding exploration and production with a focus on differentiated products and services, equipment and tool rental, consumable products, and drilling and completion chemicals. Within industrial technologies, it seeks to invest in automation and process controls, handling and packaging equipment, industrial filtration and fluid handling, measurement, monitoring and testing, professional tools, and sensors and instrumentation. Within and specialty chemicals and produc
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